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Revenue Beat: QuinStreet, Inc. Beat Analyst Estimates By 11%
QuinStreet, Inc. (NASDAQ:QNST) investors will be delighted, with the company turning in some strong numbers with its latest results. QuinStreet beat expectations, with revenue hitting US$417m (11% ahead of estimates) and EPS reaching US$0.29 (a 8.2% beat). Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from QuinStreet's six analysts is for revenues of US$1.50b in 2027. This reflects a modest 5.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to tumble 33% to US$1.11 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.50b and earnings per share (EPS) of US$1.11 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for QuinStreet
The analysts reconfirmed their price target of US$22.80, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on QuinStreet, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$21.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that QuinStreet's revenue growth is expected to slow, with the forecast 7.2% annualised growth rate until the end of 2027 being well below the historical 21% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 18% annually. Factoring in the forecast slowdown in growth, it seems obvious that QuinStreet is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for QuinStreet going out to 2029, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 2 warning signs for QuinStreet you should be aware of.
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